Overview
With a greater-than-ever §179 deduction boosted by additional first-year depreciation and pandemic-related business-friendly provisions, these are unprecedented times for businesses to make major asset investments.
From the most-up-to-date depreciation regulations to inflation adjustments and technical corrections, this course will help you navigate the complex maze of rules dealing with depreciation, amortization, and sales of property. This reference manual contains a wide range of case types and examples, covering common and uncommon situations to illustrate the most important points CPAs need to be aware of.
Major Topics:
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Final regulations – bonus depreciation and §1031 exchanges
- Technical correction Rev. Proc. 2019-13 – use it or stand to lose second-year depreciation deductions for luxury automobiles
- What are the components for real estate depreciation?
- A new SUV or sedan? A study of depreciation alternatives
- Permanency in §179 depreciation rules? How to maximize its use; when to use it; and what property qualifies
- Sale of property and the depreciation recapture rules (§§1245, 1250, unrecaptured §1250 gain for real estate, §291 for corporations)
- How to depreciate like-kind exchange property
- May §121 and §1031 apply to the same transfer of property?
- Reacquired installment sale property – calculating potential gain and new basis
- Understanding §197 amortization issues; how to handle intangible asset costs
- Depreciation issues, tax-deferred exchanges, personal property converted to business property, and an overview of home sale exclusion
- Guide for compliance and planning issues
- Cases and rulings of depreciation and amortization issues and how they impact clients, along with the useful planning opportunities
Learning Objectives
- Understand which assets are subject to depreciation
- Answer advanced §179 and automobile depreciation questions
- Fully understand depreciation and MACRS cost recovery
- Understand installment sales and reacquisitions
- Complete cases related to depreciation and sales of assets
Designed for:
CPAs in industry and public accounting who need a thorough grasp of this important area of tax law and who want to maximize the possible tax savings for their clients
Prerequisite:
Basic knowledge of tax issues for property transactions
Advanced Preparation:
None